At-a-Glance
Today’s Top Highlights
Many different markets and asset classes are seeing broad selling pressure today, including the precious metals, equity indices, and crypto futures. The S&P and Nasdaq traded lower today from their record high prices, coming off of “overbought” conditions looking on a daily basis for relative strength. Gold and Silver both traded lower today as well continuing the trend lower for near term prices, and Copper saw prices fall after almost reaching the record high price. There was a good amount of economic data released today, and traders saw ADP Nonfarm Employment Change come in better than expected when some of the manufacturing data was mixed, and the markets broadly sold off on this data. Tomorrow, we will see Initial Jobless Claims, and then Friday we will see Nonfarm Payrolls and the Unemployment Rate which could add more volatility across asset classes.
Ask me Anything
“When looking to protect against an equity portfolio, how can you determine the size of my position in the futures market”
Futures contracts offer a great opportunity to trade when the equity markets are not open and potentially look to protect long equity positions outside of market hours. In terms of size, that depends on multiple factors, including the overall size of the portfolio that you are looking to protect, the amount you are willing to risk in the futures market for that protection, and the timeframe of protection you are looking for. This all varies from trader to trader, but is important to understand when you are looking to use futures for protection.
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The information in the market commentaries have been obtained from sources believed to be reliable, but we do not guarantee its accuracy and expressly disclaim all liability. Neither the information nor any opinions expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts. The information on this site compiled by CME Group is for general purposes only. All information and data herein is provided as-is. Additionally, all examples on this site are hypothetical situations, used for explanation purposes only, and should not be considered investment advice or the results of actual market experience. CME Group assumes no responsibility for any errors or omissions. CME Group, its affiliates and any third party information and content providers expressly disclaim all liability with respect to the information and data contained herein including without limitation, any liability with respect to the accuracy or completeness of any data. You use the data herein solely at your own risk. All data and information provided herein is not intended for trading purposes or for trading advice. All matters pertaining to rules and specifications herein are made subject to and superseded by official CME, CBOT, NYMEX and COMEX rules. Current rules should be consulted in all cases concerning contract specifications.
Neither futures trading nor swaps trading are suitable for all investors, and each involves the risk of loss. Due to the leveraged nature of futures trading and swaps trading, it is possible to lose more than the amount deposited in a position. Therefore, traders should not deposit more funds than they can afford to lose without negatively affecting their lifestyles. A trader cannot expect to profit on each trade, and should only devote a small amount of their available funds to each trade. All references to options refer to options on futures.
Past performance is not necessarily indicative of future performance.
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